The Central Bank of Nigeria has imposed new rules that will force every Point-of-Sale agent to make tough choices. Starting April 1, 2026, the country’s 2 million POS agents can only work with one bank or fintech company. No more juggling Moniepoint, OPay, and PalmPay terminals at the same counter.
The CBN announced these sweeping changes on October 6, 2025, through a circular that caps daily agent transactions at N1.2 million while limiting individual customers to N100,000 per day.
CBN Forces POS Agents Into Exclusive Banking Partnerships
Most POS operators currently serve customers from multiple banks through different terminals. This practice ends in six months. The rule covers banks, mobile money operators, microfinance banks, and payment service providers.
Banks and fintechs must now publish updated lists of their agents’ locations on their websites. This promises to strengthen oversight of Nigeria’s growing agent banking sector, which processed N10.51 trillion in transactions during Q1 2025 alone.
Daily Transaction Limits Drop to N1.2 Million Per Agent
Individual agents can now process a maximum cumulative transaction worth N1.2 million daily. Individual customers face their own N100,000 daily limit, with a weekly cap of N500,000.
The limits apply to cash withdrawals, deposits, and bill payments. The CBN reserved the right to review these caps according to its Guide to Charges for Banks and Other Financial Institutions.
Real-Time Transactions and Geo-Fencing Requirements Take Effect Immediately
All POS terminals must now process transactions in real-time through secure, interoperable payment systems. The CBN mandated that financial institutions deploy technologies enabling instant settlements and immediate reversals during system failures.
Every device gets geo-fenced to its registered location. Agents cannot move terminals without formal approval from their principal bank or fintech partner. This tackles the growing trend of mobile POS operations that often lead to fraud and security issues.
Transaction receipts must include the agent’s name and geographical coordinates. Financial institutions must preserve audit trails and settlement records for at least five years to support regulatory oversight.
Monthly Reporting Becomes Mandatory for All Financial Institutions
Banks and fintechs must submit comprehensive monthly reports to the CBN by the 10th day of each following month. These reports cover transaction volumes, fraud incidents, active agent numbers, customer complaints, and training activities.
The data-driven approach helps regulators monitor trends, detect problems early, and make timely policy changes to protect the financial system’s integrity.
Super Agents Face New Geographic Distribution Rules
Super agents, i.e, large networks overseeing smaller agent outlets, must now maintain at least 50 agents spread across Nigeria’s six geopolitical zones. This ensures balanced coverage and promotes financial inclusion in underserved areas.
The CBN also restricted agents from relocating without written approval from their principal or super agent. A relocation notice must stay visible at the business premises for 30 days before any move.
Stricter Eligibility Requirements Bar High-Risk Individuals
The new guidelines block several categories of people from becoming POS agents. Anyone under 18, individuals with non-performing loans, criminal records, or blacklisted Bank Verification Numbers cannot operate as agents.
Business entities must show proof of incorporation, tax compliance, and adequate capital. The CBN seeks to reduce fraud and improve service quality through these stricter due diligence standards.
Dedicated Accounts Replace Multi-Bank Operations
Every agent transaction must go through a dedicated account or wallet maintained with their principal institution. Using non-designated accounts for agent operations constitutes a regulatory violation that attracts sanctions.
This change improves transparency and makes transaction tracking easier while preventing fund diversion and strengthening anti-money laundering controls.
Heavy Penalties Await Non-Compliant Agents and Banks
The CBN outlined severe sanctions for violations. Fines range from N2 million to N20 million for infractions like non-compliance, false reporting, or operating without valid licenses.
Persistent offenders risk suspension, blacklisting, management removal, or complete license revocation. Agents found guilty of fraud or misconduct face personal liability and placement on industry watchlists.
Industry Scrambles to Adapt Before April Deadline
Nigeria’s agent banking sector must undergo major restructuring within six months. With 8.36 million registered POS terminals and 5.90 million actively deployed as of March 2025, the scale of required changes is massive.
Some worry the N1.2 million daily cap might constrain agents in high-volume locations like markets and transport hubs.
The CBN intends to balance innovation encouragement with consumer protection in the country’s evolving financial ecosystem.
